Arvind Limited has plunged 15% at Rs 75.80 after reporting about 400 bps drop in operating profit margins to 10.31% for the quarter ended March 2012, compared to 14.22% in a year ago quarter.
“There was drop in operating margins in Brands and Retail business as company had to absorb part of higher inventory cost,” Arvind Limited said in a filing to the stock exchanges.
Meanwhile, the company reported a single digit 6% year-on-year growth in net profit at Rs 66.68 crore and net sales at Rs 1,272 crore during the recently concluded quarter.
“The year was characterized by global slowdown, weak retail demand at home, high volatility in cotton prices and foreign exchange and higher interest cost,” it added.
A combined 15.36 million shares have already changed hands on the counter so far, against an average sub 4 million shares that were trading daily in past two weeks on both the exchanges.
